Budget 101. Sarah Song Director of Budget Planning and Administration Division of Administration and Finance

Transcription

1 Budget 101 Sarah Song Director of Budget Planning and Administration Division of Administration and Finance

2 Objectives of Presentation Provide a perspective on budgeting Provide an overview of the State, CSU, and university budget processes Provide an understanding of the sources and uses of university revenue Provide an understanding of the CSU Operating Fund Introduce current and future budget items and challenges facing the University 1

3 A Budget: Budgeting Overview Source: An Introduction for Faculty and Academic Administrators By Larry Goldstein Is a map guiding the university s journey in pursuit of its mission Is a financial representation of the university s plans Should include details on how resources will be received and expended Should provide a means for tracking revenue and expenses so resources can be used most effectively to meet university goals Should present the results of resource allocation decisions and provide a means to set priorities for future resources Should be developed through a shared governance process for best results 2

4 Budgeting Overview (Contd.) Source: An Introduction for Faculty and Academic Administrators By Larry Goldstein Should include provisions for contingencies Should be flexible enough to respond to changing needs Operating budget is traditionally classified in two categories: Natural and Functional Natural classification refers to expenses identified by type rather than purpose, e.g., salaries, benefits, travel, supplies, etc. Functional classification is organized by the nature of the activity, e.g., instruction, academic support, student services, research, institutional support, operation and maintenance of plant, scholarships and fellowships, etc. 3

5 Ideal Approach Source: A Strategic Approach to Budgeting By Larry Goldstein, Campus Strategies Budgeting should be integrated with planning and measurement Approved budget is only a snapshot Process is continuous Always responding to new information All-funds budgeting Focus on accountability versus control Broadly participative process Information is most valuable when shared especially financial information 4

6 Premise Source: A Strategic Approach to Budgeting By Larry Goldstein, Campus Strategies Planning is the challenging part When it s done well, budgeting and measurement are relatively easy Effective planning identifies what is important and what s not as important Budget ideally is the quantitative representation of what s important All resource allocation decisions should align with the campus priorities. 5

7 State, CSU, & University Budget Processes 6

8 Source: CSU Continued On Next Page 7

9 Source: CSU 8

10 CSU Budget Process 9

11 Cal State Fullerton Budget Process BL 09-2 Planning, Resource, and Budget Committee Functions UPS Planning and Budgeting Process 10

12 Sources & Uses Of University Revenue 11

13 Sources of Funds University receives funding from a number of different sources The CSU Operating Fund consists of State Allocation, State Tuition Fee Revenue, and other Revenues (e.g., non-resident fee, application fee, and interest earning) University auxiliary organizations are separate, private, non- State, non-profit corporations consistent with the California Ed Code and Corporation Codes: CSU Fullerton Auxiliary Services Corporation (ASC) CSF Philanthropic Foundation Associated Students California State University, Fullerton, Inc. (ASI) CSU Fullerton Housing Authority 12

14 University Revenue By Fund Source FY Original Budget CSU OPERATING FUND $ 316,414,338 LOTTERY EDUCATION FUND 1,944,000 CONTINUING EDUCATION REVENUE FUND (CERF) 20,000,000 HEALTH FACILITIES FEE 220,000 HOUSING FUND 18,500,000 PARKING FUND 10,871,733 PARKING FINES & FORFEITURES 1,157,480 STUDENT UNION 7,940,320 AUXILIARY FUNDS: CSUF AUXILIARY SERVICES CORPORATION 32,063,073 CSUF PHILANTHROPIC FOUNDATION 607,000 ASSOCIATED STUDENTS INC. 7,203,858 HOUSING AUTHORITY 1,063,344 TOTAL UNIVERSITY BUDGET $ 417,985,146 13

15 University Revenue By Fund Source FY Original Budget CSU OPERATING FUND $316,414, % HOUSING AUTHORITY $1,063, % ASSOCIATED STUDENTS INC. $7,203, % CSUF PHILANTHROPIC FOUNDATION $607, % CSUF AUXILIARY SERVICES CORPORATION $32,063, % STUDENT UNION $7,940, % PARKING FINES & FORFEITURES $1,157, % PARKING FUND $10,871, % HEALTH FACILITIES FEE $220, % HOUSING FUND $18,500, % LOTTERY EDUCATION FUND $1,944, % CONTINUING EDUCATION REVENUE FUND (CERF) $20,000, % 14

16 CSU Operating Fund Revenue Summary FY Original Budget BASELINE ONE-TIME FUNDS TOTAL STATE ALLOCATION $ 116,085,961 $ - $ 116,085,961 BUDGETED REVENUES Tuition Fee $ 182,144,148 $ 182,144,148 Non-Resident Fee 8,556,744 8,556,744 Health Fee 2,200,000 2,200,000 Application Fee 1,952,665 1,952,665 Trust Fund Interest Earnings 290, ,400 Other Receipts 5,184,420 5,184,420 Total Revenue $ 200,328,377 - $ 200,328,377 Total State Allocation and Revenues $ 316,414,338 $ - $ 316,414,338 ONE-TIME RESOURCES (CAMPUS RESERVE) - 6,550,236 6,550,236 Grand Total Resources $ 316,414,338 $ 6,550,236 $ 322,964,574 15

17 CSU Operating Fund Revenue Summary FY Original Budget Tuition Fee $182,144, % State Allocation $116,085, % Other Receipts $5,184, % Trust Fund Interest Earnings $290, % $2,200,000 Application Fee 0.7% $1,952, % Non-Resident Fee $8,556,744 Health Fee 2.7% 16

18 CSU Operating Fund Expenditures By Division & Program (Functional Classification) FY Original Budget Division Instruction Research * Public Service Academic Support Student Services Institutional Support Operation and Student Maintenance Grants and of Plant Scholarships Grand Total President ,972 2,697, ,828,633 Academic Affairs 97,862, , ,076 16,604,721 4,311,675 2,425,336-47, ,500,949 Administration and Finance ,450,958 10,435,885-19,886,843 Information Technology 457, ,992-11,282, ,987,555 Student Affairs ,790,212 1,296, ,086,460 University Advancement ,396, ,396,943 University Wide 72,228, ,843,020 11,522,978 45,682, ,277,191 Total 170,548, , ,076 16,851,713 18,232,859 49,392,897 21,958,863 45,730, ,964,574 Research Budget of $109,200 represent the budget of Social Science Research Center that is coded as Research Program in functional program classification. University incurs research expenses in ASC or in the departments classified as Instruction Program. 17

19 CSU Operating Fund Expenditures By Program (Functional Classification) FY Original Budget Student Grants and Scholarships $45,730, % Instruction $170,548, % Operation and Maintenance of Plant $21,958, % Institutional Support $49,392, % Student Services $18,232, % Academic Support $16,851, % Research $109, % Public Service $140, % 18

20 CSU Operating Fund Expenditures By Division & Natural Classification FY Original Budget Division Salaries Benefits Financial Aid Contractual Info Tech Services Equipment Costs Travel Supplies and Services Other OE Grand Total President 1,856,484 12,000 70, ,149 2,828,633 Academic Affairs 111,580,681 76,410 9,843, ,500,949 Administration and Finance 16,824,608 13,400 10,500 3,600 41,100 2,768, ,893 19,886,843 Information Technology 8,223,254 3,764,301 11,987,555 Student Affairs 13,453,031 1,633,428 15,086,460 University Advancement 4,395,050 1,001,893-5,396,943 University Wide 1,474,354 65,663,388 45,682,451 16,305,530 17,151, ,277,191 Grand Total 157,807,462 65,675,388 45,758,861 83,400 10,500 3,600 41,100 36,207,902 17,376, ,964,574 19

21 CSU Operating Fund Expenditures By Natural Classification FY Original Budget Salaries $157,807, % Other OE $17,376, % Benefits $65,675, % Supplies and Services $36,207, % Info Tech Costs $3,600 Contractual Services 0.0% $83,400 Equipment 0.0% $10, % Travel, $41, % Financial Aid $45,758, % 20

22 Drastic state budget cuts Budget Items/Challenges Chart from CO s CSU support budget presentation dated July 17,

23 Budget Items/Challenges - Continued Many unknowns Funding items Unfunded expenditure mandates (e.g., health benefit cost increases, CMS, etc) PRBC Priority Items Deferred maintenance 22

24 Questions